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The trustee of the failed crypto exchange Mt. Gox wrote in the latest notice that repayments in Bitcoin and Bitcoin Cash will start in July.
Mt. Gox, once the world’s largest Bitcoin exchange, seems to be set to finally begin repaying its creditors 142,000 BTC, 143,000 BCH, and ¥69 billion (around $432 million) nearly a decade after its collapse.
The trustee of the failed crypto exchange Mt. Gox, Nobuaki Kobayashi, wrote in the latest notice that repayments in Bitcoin (BTC) and Bitcoin Cash (BHC) will commence in early July 2024, following extensive preparations to ensure safe and compliant transactions.
“We have taken time to ensure safe and reliable repayment to creditors, including technical remedies for safe repayments, compliance with financial regulations in each country, and discussion of repayment arrangements with the cryptocurrency exchanges.”
Nobuaki Kobayashi
The repayments will commence in the order of the crypto exchanges with which the Rehabilitation Trustee has completed the exchange and confirmation of the required information, the notice reads. It’s unclear, however, how fast these repayments will be processed and what immediate impact they will have on the crypto market.
Following the news, Bitcoin declined by nearly 3% and is trading at $62,440, according to data from CoinMarketCap.
Founded in 2010, Mt. Gox quickly grew to become the world’s largest Bitcoin exchange. However, the success was short-lived as in early 2014, the Tokyo-based platform abruptly halted trading, shut down its website, and filed for bankruptcy protection, revealing that it had lost approximately 850,000 BTC, worth about $450 million at the time. Subsequent investigations revealed that the majority of these Bitcoins had been stolen over several years, starting as early as late 2011, from the exchange’s hot wallets.